Special fee to make imported liquor dearer in M’rashtra

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Mumbai, Aug 12: Imported liquor brands in Maharashtra will be dearer for the consumers as the state government has issued a notification on Tuesday increasing the ‘special fee’ by 200% for imported spirits and wines, while there is an increase of 100% and 125% hike in duty for mild beer and fermented beer respectively.

The government, in its notification, under the heading ‘Rates of special fee,’ says, “For spirits, 200% of the manufacturing cost or Rs 300 per bulk litre, whichever is higher, 200% of the manufacturing cost or Rs 200 per bulk litre, whichever is higher, for wine either in bottle or in bulk 100% of the manufacturing cost or Rs 15 per bulk litre, whichever is higher, for mild beer and 125% of the manufacturing cost or Rs 20 per bulk litre, whichever is higher, for fermented beer.”

However, the industry has not responded to the government notification due to ‘lack of clarity.’ A couple of industry leaders FE spoke refused to comment. Sanjay Menon, the Mumbai-based wine importer told FE , “There is no clarity in the notification. As per the notification, the margin allowed under MRP should include import duty, sales tax, retailers margin, octroi, and others, which would be impossible. We are meeting the officials with the excise department tomorrow, for more clarity on this.” Another company official made the same response, “There is no clarity in the notification. We are meeting the officials with the excise department soon. We will respond later.”

The home department has issued the notification on Tuesday informing the new rules which would be known as Bombay Foreign Liquor and Rectified Spirit (Transport) Fees (Amendment) Rules, 2008.

In November 2007, Maharashtra had applied a dual prong strategy by cutting down the duty on imported spirits along with doubling the excise duty on imported wines to 200% from 100%. The government had announced 4 slabs of duty cuts in November. For the brands that cost above Rs 5000/ case, duty will be 75% of the price or Rs 300, whichever is higher, instead of earlier duty of 200%. For the brands priced between Rs 2000-5000/case will have duty of 100% or Rs 300, whichever is high. For the brands ranging between Rs 1000-2000/case, 150% duty or Rs 300, whichever is high will be imposed, while brands priced below Rs 1000, will be imposed a duty of 200% or Rs 300.